An economist from the African Development Bank has criticized the European Union's Carbon Border Adjustment Mechanism (CBAM), arguing that African nations were not consulted during its design. While the EU views the tax as a way to prevent carbon leakage and ensure fair competition, African leaders worry it acts as a protectionist trade barrier that could hinder industrialization. Although the overall macroeconomic impact on Africa is expected to be small, specific sectors like aluminum, iron, and steel are highly exposed. Countries such as Mozambique, which exports most of its aluminum to Europe, face significant compliance costs and potential revenue losses.
